A Look at Taiwan's Cooperation With
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Austral: Brazilian Journal of Strategy & International Relations e-ISSN 2238-6912 | ISSN 2238-6262| v.9, n.17, Jan./Jun. 2020 | p.104-126 A LOOK AT TAIWAN’S COOPERATION WITH PARAGUAY (2009 – 2019) Maria Antonella Cabral López1 Introduction The Republic of China - Taiwan is a complex territory because of its historical development. This island of 35,980 km2 (Central Intelligence Agency 2019), is located 160 kilometres away from China, and was first occupied by settlers of Malay-Polynesian origin and then by Japanese or Chinese settlers, on which there are different assessments. Although there are previous explorations towards the sixth century, it was towards the fifteenth century, during the Ming Dynasty, when the closest contacts with China began. It was subsequently established as the Dutch colony of “Ilha Formosa”, but this only lasted a couple of decades until it was established as a district of the Chinese province of Fujian (Toro Dávila, Chacón Morales and Pérez Le-Fort 2001). In 1885 it was established as a province of China, which under the Treaty of Shimonoseki, had to cede this island to Japan, that had won the first Sino-Japanese war in 1895 (Ríos 2016). After the end of World War II and the Civil War (1946-1949), the People’s Republic of China was established2. This prompted the Kuomintang3 to reach Taiwan and establish, under the leadership of Chang KaiShek, an authoritarian government with the United States’s support (Arnone 2017). US recognition of Taiwan´s sovereignty, ceased in 1979- even though it remains the same, but under other circumstances (Library of Congress of the United States of America 2005). 1 Professor of International Economics at the National University of Asunción, Paraguay. E-mail: [email protected] 2 Due to the similarity in the official denominations, and in order to simplify the reading, this article has chosen to name the Republic of China- Taiwan or Insular China as Taiwan (or Taipei), and the People´s Republic of China or Continental China as China. 3 “Chinese Nationalist Party” (Arnone 2017). 104 Maria Antonella Cabral López This last fact influenced so that the countries of the West progressively followed the same path. According to Ríos (2019), only 17 countries recognized Taiwan in February 2019, all of them islands of the Pacific, the Caribbean Sea and Latin America, an exception to the Vatican and Swaziland. The number fell to 15 in September of the same year, when in the same week, Solomon Islands and Kiribati stopped recognizing Taiwan4. In South America, Paraguay is the only country that maintains relations with Taipei, which makes it a relevant ally for this island. Diplomatic relations between Paraguay and Taiwan date from 1957 (Embassy of the Republic of Paraguay in the Republic of China (Taiwan), 2018; Ministry of Finance, 2019). At that time, the Paraguayan Ambassador in Venezuela, Carlos Montanaro, and Taiwanese Foreign Minister Yeh, Kung Chao signed an “Agreement for Diplomatic Notes for the Establishment of Diplomatic Relations” in Caracas (Fleitas 2017). The bilateral relationship has extended over time and with relative intensity. The purpose of this material is to present the fundamental aspects of Taiwan’s cooperation with Paraguay in the last decade. The article is divided into four sections: the first one introduces the issue of South-South Cooperation (SSC); while in the second it considers Taiwan as an actor of international cooperation. The third addresses the bilateral relationship between the Asian country and Paraguay; summing up, it is presented a synthesis on the cooperation carried out between 2009-2019. Methodology This research is a bibliographic-documentary type. For its development diverse sources were used such as scientific journals, books, periodicals, treaties, reports and other documents. The level of this research was descriptive, since its purpose was to present the fundamental aspects of Taiwan’s SCC with Paraguay for the 2009-2019 period. This issue is relevant in attention to the dispersion of the available information and the shortage of documentation about this issue. The main aspects and the synthesis for the article were obtained through and analytical method, which allowed us to reach and present these results. 4 The Solomon Islands announced its decision in 16/09/2019 and Kiribati in 20/09/2019 105 A Look at Taiwan’s Cooperation with Paraguay (2009 – 2019) Results South–South cooperation: some previous concepts Cooperation implies a link between international actors, which seeks the mutual satisfaction of interests by making use of the resources available for them for the implementation of coordinated and/or solidarity actions (Calduch cited by Ayllón 2007). Sotillo (2011) explains the development of cooperation as a part of international cooperation and this last theme does not have a unique, adjusted and complete definition, valid for all times and places. The latter author argues that cooperation has been loading and downloading content. Because of this, it is essential to be clear about the priorities for development, since these are the ones that will serve to establish the content and objectives that condition the types of development cooperation (Sotillo, 2011). In this same sense, Calabuig Tormo et al. (2010) present a review of the different predominant conceptions of development and the influence which they have exerted on cooperation activities over the last decades. Likewise, Fernández Franco and Román Marugán (2013) cite four characteristics of the international cooperation system: a. Discretionality, because the basis is the free will of the donors; b. Plurality, because there are different actors; c. Decentralization, because despite the role of the OECD Development Assistance Committee, there is no central or hierarchically superior authority; d. Adaptation to the historical context, since it must be understood according to the moment, which reaffirms the above. Those characteristics allow the inference that the typology of cooperation can be very varied. The same authors establish three categories for cooperation: a. According to its thematic scope (political, economic, technical and development promotion); b. According to their degree of institutionalization (informal or organic); c. By the number of participants (bilateral, multilateral and triangular) (Fernández Franco & Román Marugán, 2013). In order to escape the scope of this material, there is no need to deepen the different existing classifications and the one that considers the nature of donors and recipients is directly addressed, depending on whether these countries are from the north or south. According to this criterion, cooperation can respond to the North-South logic, when the donor is a developed country 106 Austral: Brazilian Journal of Strategy & International Relations v.9, n.17, Jan./Jun. 2020 Maria Antonella Cabral López and the recipient is a developing country; and South-South56 when both donors and recipients are developing countries. SSC is therefore the result of the search for a greater presence of emerging countries, which, lacking sufficient resources of hard power, use cooperation to reinforce their presence and influence in the area of interest (Velázquez Flores, Prado Lallande & Díaz 2015). Likewise, Hirst (2012, 17) argues that SSC has an instrumental sense for foreign policy, which allows it to be valued as a soft power tool. Although the literature, mainly in English, considers that the fields of study are: a. Financial funds for development (concessional loans with or without subsidized elements and non-concessional loans at commercial interest rate); b. Capacity building (technical cooperation, scholarships, exchange of experts, etc.); c. Funds for trade and investment facilitation (export credits, etc.), these are not the only ones. For its part, the studies about SSC have considered both, reimbursable and non-reimbursable funds. (Malacalza 2019, 73). This reflects a political-technical dimension of SSC, which relates to instruments such as development finance and reimbursable funds in more favorable terms, among others. Malacalza (2019), presents an interesting summary of works that demonstrate this vision. The same author maintains that in addition to this dimension there is another: the economic-commercial one, which includes instruments such as non-refundable funds, on the related quality, there is a “curious shortage of work” (Malacalza 2019, 72). Taiwan as a player of international cooperation Firstly, the reasons why Taiwan provides international cooperation will be addressed. Following Chan (1997), there are two types of justifications, one legal and the other social. The first is established in the Taiwanese 5 Cohn (2012) pointed out that the countries of the South are those least developed socially and economically speaking. They generally have a colonial past, their income levels per capita are more modest, the infrastructure for communications and transportation is inadequate and access to technological resources is limited. They may present institutional short comings and its relevance in the international system and international organizations is less significant. 6 Alemany, C., & Freres, C. (2018, p. 63) state that the South is considered as a group of subordinate countries in the global system, which were not mostly distinguished, because “they were not relevant”, since developed countries are the ones which determine the facts. The same authors argue that although emerging countries have gained relevance,